You can’t use PayPal as a payment method for Klarna. You will instead need to add a standard Visa or MasterCard debit or credit card, or an American Express card. Customers in the United Kingdom and other supported regions can also choose to link their bank account to have payments automatically deducted when they’re due.
Interestingly, despite not being accepted as a payment method, you can still use Klarna with PayPal to pay for items at stores that use the online payments system as their provider of choice, using a one-time card to receive a temporary virtual card number to use for the transaction — similar to how you use Klarna on Amazon.
This means that you can not only use Klarna to pay bills, but to settle invoices received through PayPal too. It’s also ideal for purchasing virtual services and buying items through eBay (if the auction website is still using PayPal and hasn’t transitioned over to its own Managed Payments service in your country of residence yet).
What you can’t do is use Klarna to fund your PayPal Balance to transfer money between people — not natively, anyway. This is because the one-time card is intended to be used once and can’t receive the small deposit required to link a credit or debit card to your PayPal account. But there is a small workaround.
If you’re wanting to use Klarna to top up your PayPal Balance, though, you can always purchase a prepaid debit card from an online retailer through Klarna, then use the prepaid card with PayPal. It’s a little involved, but it does make it possible to use PayPal with Klarna for virtual balances to transfer funds to a friend.